Assume Company X had an 80,000 EBITDA in 2019 and its EBITDA is expected to grow by 4% per year. The company has no excess cash or marketable securities and does not project to have any excess cash or marketable securities in the future. The company has learned from its investment banker that its EBITDA multiple for purposes of arriving at its enterprise value is 14 and this EBITDA multiple is not projected to change in the future.

Using the company’s projected 2022 EBITDA and the EBITDA multiple approach to arrive at a year-end 2022 valuation, what is the company’s projected 2022 enterprise value and what is its projected total value? You may want to refer to the March 4 lecture on valuations using EBITDA as posted on Blackboard Learn.

Answer this financial planning and analysis problem:

A firm has a product with $200,000 in annual sales. Management is considering two different pricing alternatives for this product for next year.
Alternative one is to not change the price of this product next year. The expected result would be 5% sales growth and a 30% gross margin.
Alternative two is to increase the price of this product by 5% next year. The expected result would be 1% sales growth and a 33.3% gross margin.

Based on these expected results, which would you recommend? What is next year’s expected gross profit in each case?

2. the external environment (connect)choose whether each example belongs in the general, task, or internal environment.exampleenvironmenta worldwide recession task environment / general environment / internal environmentlocal mothers asking their community grocery store to carry no-salt cheerios-type cereal for their babies task environment / general environment / internal environmentchoose the phrase that best completes the following sentence.the relationship between the task environment and the general environment is best described as: a one-way system: changes in the task environment affect the general environment, but changes in the general environment do not affect the task environment.an open system: changes in the task environment affect the general environment, and changes in the general environment affect the task environment.a one-way system: changes in the general environment affect the task environment, but changes in the task environment do not affect the general environment.a closed system: changes in the general environment do not affect the task environment, and changes in the task environment do not affect the general environment.©bloomberg via getty imagesmanagement in the newsin april 2010, the explosion of british petroleum’s (bp) deepwater horizon oil drilling rig and the accompanying oil spill dramatically changed the external environment in which all oil companies operate. the explosion released more oil than any other accidental spill in history and had a huge impact on the waters and surrounding communities of the gulf coast. the conditions that led to the spill, the attempts to stop the spill, and the clean-up and aftermath of the spill prompted debates in the u.s. senate, concern on wall street, and attention from companies all over the world.match each oil spill event with a specific dimension of the general environment.eventgeneral environment dimensionbp stock prices falling 25% during the first month after the oil spill oil seeping into pelican nesting grounds, which will place the brown pelican back on the endangered species list people moving from louisiana to oklahoma to avoid the effects of the spill